Royal Caribbean Cruises Ltd. announced the completion of its private offering of $1.5 billion aggregate principal amount of 5.625% Senior Notes due 2031 on September 26, 2024. This offering was upsized from the previously announced $1.0 billion, indicating strong market demand for the company's debt.
The proceeds from these notes will be used to redeem all of its outstanding $700 million aggregate principal amount of 7.250% Senior Notes due 2030 and to repay in full the $232 million outstanding obligations under its Silver Dawn finance lease. This strategic move eliminates all guaranteed or secured notes outstanding, returning the company to a fully unsecured capital structure.
This refinancing is expected to reduce the company's cost of capital and improve its balance sheet health. The successful execution of this transaction aligns with Royal Caribbean's goal of achieving investment-grade balance sheet metrics and enhancing financial flexibility.
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